The Treasury Department and Small Business Administration are responsible for updating the application form and instructions for loan forgiveness. ... Paycheck Protection Program Loan Forgiveness Application. You are not required to submit your PPP loan forgiveness application before December 31, 2020. The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483). To be eligible to use the EZ application you must meet certain requirements (we’ll go over those next). All versions. The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. However, the new SBA guidance explains that this expiration date is the temporary expiration date for approved use of the forms. It released a third PPP Loan Forgiveness application for those who received $50,000 or less in loan proceeds. ... Paycheck Protection Program Loan Forgiveness Application. Some banks have been accepting forgiveness applications since July 2. The information provided on this website does not, and is not intended to, constitute legal, tax or accounting advice or recommendations. Related programs: PPP. Concerns had arisen among many PPP borrowers because the program’s loan forgiveness application forms (3508, 3508EZ and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. Borrowers can submit their forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. OR. The SBA has released the “Paycheck Protection Program Loan Forgiveness Application”[1] that contains information on the PPP forgiveness program. By Office of Capital Access. The SBA has stated that it intends to provide a new Loan Forgiveness Application and new guidance that are updated in accordance with the new PPP Flexibility Act. This week the SBA has released a guidance that resolves confusion the due date of the PPP loan forgiveness applications. I’ve read some advice on waiting to apply to better justify our expenses and keep more of our payments. After much confusion surrounding the actual due date, the SBA released this guidance to all who are in the process of submitting for loan forgiveness. EZ Loan Forgiveness Application: The simplified two page loan application makes applying for loan forgiveness easier. If you are certain a portion of your PPP loan will be unforgiven and want to conserve cash flow. The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. As COVID-19 brought many shutdowns throughout cities in the US, many businesses were struck with a struggle to stay open, follow strict guidelines, or shut down and let go of their staff. If you apply for forgiveness after using all your PPP funds on September 15th, 2020 (whether your covered period is over or not), for the purpose of Safe Harbor, you will compare the number of FTEs you had on the most recent payroll to those you had on payroll on February 15, 2020. The new PPP FAQs come as the August 8, 2020, deadline to apply for a PPP loan fast approaches, and as Congress and the White House negotiate a new … For loans being disbursed July 16 and later, this means that you will not be able to take full advantage of the 24 weeks. By Office of Capital Access. Loans are considered to be “made” on the date the SBA assigned a loan number to your PPP Loan. On October 8, 2020, the SBA posted an alternative PPP Loan Forgiveness Application Form 3508S (“SBA Form 3508S”) for borrowers with a PPP loan of … While the forms have an expiration date of October 31, 2020 displayed in the upper-right corner, you can still use the forms. The new FAQ clarifies when loan forgiveness applications are due. Overview. The Covered Period began on the date you received your PPP funds. "It is important to remember that the PPP loans are going directly through lenders, not directly through the SBA," Clendenning said. Listed under FAQs, businesses will see that the SBA explains “borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement.” Within this newly added guidance, the SBA also reminds borrowers “that loan payments are deferred only until 10 months after the last day of each borrower’s loan forgiveness covered period.” This was a relief to small businesses that began rushing to complete their applications, believing they needed to be submitted by the end of October 2020. PPP borrowers must apply for loan forgiveness with the lender that processed the loan. One question among the FAQs says, "The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. The content on this website is provided “as is;” no representations are made that the content is error-free. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. That depends on the size and structure of your business. the date where you have to demonstrate that you have restored FTEs or salary/wages to prove you meet the applicable safe harbor) is the earlier of December 31, 2020 or the date you submit your loan forgiveness application. It released a third PPP Loan Forgiveness application for those who received $50,000 or less in loan proceeds. Download .pdf. Below are the ten important things to know about the Paycheck Protection Program (“PPP”) Loan Forgiveness Applications and the detailed instructions for the applications posted on June 16, 2020, and October 8, 2020. The Paycheck Protection Program Flexibility Act includes changes that should bring a sigh of relief for business owners who continue to struggle to get back on their feet in the wake of COVID-19. The SBA has apparently been receiving many inquiries regarding the due date. However, borrowers that meet one of three criteria can use the much simpler PPP Loan Forgiveness Application Form 3508EZ: SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan. The PPP Loan Forgiveness Application (AKA “the standard application”) helps businesses that may have PPP loans $50,000 or more and made more significant employee reductions (more than 25%) and wages, or for businesses that may have more complex situations. The Paycheck Protection Programs loans (PPP Loans) were aimed to help struggling businesses and provide an incentive for them to stay open. On August 4, 2020 and August 11, 2020, the SBA posted the Paycheck Protection Program Frequently Asked Questions (FAQS) on PPP Loan Forgiveness (“FAQs”), on August 24, 2020, it posted Interim Final Rule – Treatment of Owners and Forgiveness of Certain Nonpayroll Costs and on October 8, 2020, it posted Interim Final Rule – Additional Revisions to Loan Forgiveness and Loan Review Procedures, … PPP Loan Forgiveness Calculation Form. Although your loan document may state that your first payments are due in six months, the PPP Flexibility Act signed on June 5, 2020 revised the law so that payments are not due on your PPP loan until forgiveness has been determined. You will need to fill out a PPP Loan Forgiveness Application form and submit that to your lender. And there are some banks that won’t be announcing their forgiveness process until late August or early September. If you received your PPP loan before June 5, you can still use an 8-week period. The SBA answered, "No." The U.S. Small Business Administration (SBA) released guidance Tuesday confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on Oct. 31. As discussed in our June 4, 2020, Client Alert on the Paycheck Protection Program Flexibility Act of 2020 (PPPFA), the PPPFA amended several key provisions of the Paycheck Protection Program (PPP), but one item that did not change is the application deadline.This means all PPP applications are due by June 30, 2020. When is my PPP loan forgiveness application due? The SBA and Treasury released late Friday evening the long-awaited application to apply for forgiveness of a Paycheck Protection Program (PPP) loan. Applications for loan forgiveness will be processed by your lender. The rules surrounding PPP loan forgiveness have continued to evolve since the program was first rolled out. If you had a PPP loan prior to the Paycheck Protection Program Flexibility Act being signed, you can choose to use the original 8-week period instead of the 24-week period. SBA Releases PPP Loan Forgiveness Application and Instructions for Borrowers – May 18, 2020 by Adam Hill. endstream endobj startxref • Submit Loan Forgiveness Application (SBA Form 3508 or 3508EZ) to Lender – Due Date -10 months after CP under New Act. The Covered Period began on the date you received your PPP funds. The funds can be used to pay any eligible expenses incurred during the period beginning on the date the lender makes the first disbursement of the PPP loan to the borrower. For loans made before June 5, 2020, you can choose to use either an 8-week or 24-week loan forgiveness covered period. When employers are eligible to submit the PPP loan forgiveness application. Updated 11-30-20 with new expiration date. 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